Agriculture employs a large share of the workforce in Lao PDR and Viet Nam, leaving a substantial share of the population dependent on a climate-vulnerable sector exposed to floods, typhoons, drought, rising temperatures, and saline intrusion. Although both countries' national climate plans call for low-emission, climate-resilient agriculture and sustainable aquaculture, private investment remains far below what is needed. Barriers include high upfront costs, long payback times, limited access to knowledge and technology, and insufficient policy support.
The Mekong Earth Regeneration Fund (MERF) will accelerate the transition to climate-resilient and low-emission agriculture, forestry, and aquaculture in Lao PDR and Viet Nam by investing in 10-12 climate agricultural companies and supporting their growth. Through a blended-finance structure, it will mobilise private capital to expand climate-resilient regenerative agriculture and low-emission land-use practices across the Lower Mekong Region.
Over its twelve-year lifespan, MERF is expected to reach around 279,400 people directly and a further 33,262 indirectly, and to deliver about 8.5 million tCO2eq in emission reductions, alongside new jobs, stronger market access, and improved income resilience for farmers.
Managed by Mekong Capital, a regional private equity fund manager, and with Deutsche Bank as the Accredited Entity responsible for oversight, monitoring, and supervision, the project will use concessional climate finance to crowd private capital into a market where it remains scarce. MERF advances GCF's objective to catalyse private sector investment and its strategic priorities on supporting food systems and mobilising finance at scale.
